Convertible Preferred Stock Warrants

12 Months Ended

Dec. 31, 2012

Convertible Preferred Stock [Abstract]

Convertible Preferred Stock: warrants [Text Block]

Convertible Preferred Stock

In July 2004, the Company completed a private placement of Series A-1 Convertible Preferred Stock (“Series A-1 Preferred”) to four unaffiliated institutional investors.  We also issued to the investors warrants to purchase shares of our Class A common stock, at an exercise price of $6.95 per share, and unit warrants to purchase Series A-2 Convertible Preferred Stock (“Series A-2 Preferred”).  The conversion, exercise and redemption prices, along with the number of shares and warrants, were adjusted for stock dividends paid on December 31, 2004 and on December 30, 2005.

All outstanding warrants were exercised in 2011 and 2012 and none were remaining as of December 31, 2012.

The fair value of the warrants was calculated using the Black-Scholes option pricing model and was classified as a liability on the balance sheet in the amount of $0.5 million at December 31, 2011.  The change in fair value of warrants was reported as a component of revenue in the income statement.  The change in fair value of warrants for the year ended December 31, 2012, 2011 and 2010 caused an increase in revenues of $0.5 million$1.1 million and $0.2 million, respectively.